JPYSGD pops to highest close since August 21st
Japanese Yen/Singapore Dollar (JPYSGD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYSGD finished Wednesday at 0.012945 gaining 37 pips (0.29%). Today's close at 0.012945 marks the highest recorded closing price since August 21st. Closing above Tuesday's high at 0.012925, the forex pair confirmed its breakout through the prior session high after trading up to 32 pips above it intraday.
Daily Candlestick Chart (JPYSGD as at Sep 16, 2020):
Wednesday's trading range has been 62 pips (0.48%), that's slightly below the last trading month's daily average range of 71 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYSGD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on September 10th, JPYSGD actually lost -0.15% on the following trading day.
The FX pair managed to close above the 50-day moving average at 0.012937 for the first time since August 4th.
Though JPY/SGD is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 0.012963 where further buy stops might get activated. Further buying could move prices higher should the market test August's nearby high at 0.013024.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/SGD. Out of 342 times, JPYSGD closed lower 58.48% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.39% with an average market move of -0.08%.